USD Weakness to continue !
| 20 September 2010
The Asian and European sessions were pretty much quiet heading towards the North American sessions. The weakness of the USD opening with the index lower after the Friday's closing price at 81.4o have sent the USDX at a low heading down to the 1st support price of 80.10-20bp. Supporting Video update.
Trending USDX vs.EURGBP Cross rate - Live 2
URL:http://www.youtube.com/watch?v=iuxs8Yh2D_E
However, if and when it does the next levels we are looking at would be in the vicinity of 79.25-80 extensions. Meanwhile, a slight recovery would not be ruled out at the 82.05 levels depending on the reports within the week. The intraday price actions would increase as we reach the closing month next week with the opening of the new month that lands on a closing week of September. As we have continuously emphasize the significance of an over-lapping months and weeks were trading activity is higher than normal trading days. We do recommend to analize this important detail as it does provide an insight of the market first few trading days of the coming month. Pls refer to the price page indicator that reflects price actions and behavioral patterns without having to view a technical chart. A good example would be the cross rate of the EURGBP on a daily and weekly candlestick bar configuration.
The Euro vs. the USD has grown more at ease with the continuation of the Euro's strength and the GBPUSD to still continue with lower down turn extensions for the GBPound. close to the 1.5520 levels with intraday recovery from within the four horly movements. This allows price change intervals between trading sessions in Europe and the North American sessions. thus allowing some breathing room for the GBPUSD to recover and the cross rates to do the same just to avoid the relative overbought areas.
The up-coming FOMC statements from the meeting would prove to be supportive for the USD although, a mixture of reports from jobless claims, Existing home sales and the more important Durable goods orders were the market is expecting -1.30% vs. 0.40%, the New Home sales expected figure of 290k vs. 276 from the previous may add fuel to the market. But the highlights of this weeks reports would be the speech of FED chairman Ben Bernanke on Friday and the Saturday's statements of the BOJ Gov. Shirakawa would be the determining factor to watch for.
Listed below is the breakdown of importance.
Existing Home Sales
Sept. 23
Actual -
Forecast 4.04M
Previous 3.83M
The Existing Home Sales measures the annualized number of existing residential buildings that were sold during the previous month.This report helps to analyze the strength of the US housing market, which helps to analysis the economy as a whole. A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Durable Goods Orders
Sept. 24
Actual -
Forecast -1.30%
Previous 0.40%
The Durable Goods Orders measures the change in the total value of new orders for durable goods.Higher reading indicates activity increase by manufacturers.The Durable Goods Orders report is quite volatile and it usually revised with the release of the Factory Orders report, about a week later.A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
New Home Sales
Sept. 24
Actual -
Forecast 290.00K
Previous 276.00K
The New Home Sales measures the annualized number of new residential buildings that were sold during the previous month. This report helps to analyze the strength of the US housing market, which helps to analysis the economy as a whole.The new home sales report is quite volatile and subject to huge revisions.A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
Fed Chairman Ben Bernanke Speaks
BOJ Gov. Shirakawa Speaks on Sept 25
